Chapter 29 - The Sale of Goods

Abstract

The basic definition of a sale of goods is a “contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration, called the price.” “Property in goods” is a way of describing what is commonly called ownership, but a sale of goods can include an agreement to sell whereby the ownership of the goods passes at a later date. “Money consideration” generally means that the buyer must pay in money. The precise moment when the contract is formed is critical, in that before the contract is formed either party is free to withdraw. The contract is made when an offer made by one party is accepted by the other. An offer is an offer to buy. The display of goods for sale in a shop, for example, is merely an invitation to make offers. The cancellation of a contract under the Regulations also has the effect of cancelling any “related credit contract.” A situation often arises where the seller of goods does not have proper title to the goods. This may occur where the goods are not his to sell or where the contract by which he originally acquired the goods is voidable.